Numerous homeowners who attempted to lower their monthly mortgage payment obligation through the Making Home Affordable modification program may have been unable to benefit from this assistance because of a second mortgage which was in place on their home. Obviously, certain homeowners who had a second lien on their mortgage were unable to find the affordability they needed, but the Second Lien Modification Program was implemented as a way to help homeowners in this situation.
According to the Making Home Affordable Program, homeowners who had their first lien modified through the Home Affordable Modification Program may also have their second lien modified or adjusted in a way that allows them to benefit from a reduction in their monthly mortgage payment obligation. Some of the ways that mortgage servicers have helped homeowners through Second Lien Modification plans is by either reducing their interest rate, extending their mortgage terms on the second mortgage, or offering principal reductions and forgiveness plans in certain instances.
Also, some homeowners may have their second lien forgiven completely through this program, but that will be at the discretion of the mortgage servicer. While homeowners are still continuing to struggle in areas concerning their mortgage payment obligation, it’s hoped that plans like the Second Lien Modification Program can bring more relief to homeowners who are having a difficult time making their mortgage payment when multiple mortgages are in place.
Homeowners, in general, have been critical of servicers who are working within the Making Home Affordable Program and there have been accusations that lenders are unwilling to make these assistance plans available to homeowners in need, opting to foreclose instead. Yet, homeowners should still be aware, despite troubles between servicers and homeowners, these assistance programs are still in place and can be beneficial to helping a homeowner avoid foreclosure.
Advisers often suggest that homeowners contact their servicer early if they are having trouble making their mortgage payment or know they will have difficulties in the near future. While this is no guarantee to getting assistance, homeowners may stand a better chance at finding foreclosure prevention plans that work for them if they begin the process early.